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UK Chip Designer Arm Replaces CEO Of Chinese Joint Venture

Replaced CEO said ouster was illegal and that reports of Arm extricating itself from the JV by transfer of its 47% stake to SoftBank from Arm China were false.

Softbank's Sale Of Chip Manufacturing Arm To Nvidia For $66B Collapses

UK-based chip designer Arm, a unit of the SoftBank Group, has announced that it has replaced its Chinese joint venture CEO following a 2-year-old dispute over the control of the company that raised dark storm clouds over a highly anticipated planned IPO. 

Arm announced the appointment of Liu Renchen and Eric Chen as co-CEOs. Liu has also been registered as well as accepted as the company’s general manager and legal representative by the local authorities of the Shenzhen government. 

Back in 2018, Arm had sold a majority stake in Arm China to some local investors. The management dispute goes back to 2020 when Arm announced that it had replaced the CEO Allen Wu based on an investigation that found that Wu was risking the progress of Arm China as well as the interests of company stakeholders.

However, Wu refused to leave. He continued to appear as CEO at different industry events, which made it very difficult for Arm to conduct various important businesses like audits. Arm has disclosed in its latest financial report that it is resolving disputes with a senior management member in Arm China (no prizes for guessing who) and also that the financial data of Arm China was unaudited. 

Wu resisted this move till this Thursday, saying his ouster was illegal and that reports of Arm extricating itself from the JV by transfer of its 47% stake to SoftBank from Arm China were false. According to him, China’s supply chain and self-sufficiency in technology are being attacked by foreign companies. Arm and SoftBank refused to comment on this. 

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